Here’s the shocking reason why Americans aren’t buying cars anymore

The face of the American car market has transformed over the past decade, with traditional cars like sedans now accounting for a meager 19% of new vehicle sales. Meanwhile, SUVs have surged to a record high, making up 58% of the market, as American drivers prioritize space and features over mileage and price. Major car manufacturers have adapted to this shift, with Ford and Chevrolet focusing more on their profitable SUV and truck models.

Manufacturers have shifted their focus to SUVs and trucks, responding to the changing tastes of American drivers. In fact, most new vehicles on sale today don’t fall under the ‘car’ category at all, according to car-shopping site Edmunds. The preference for SUVs has seen traditional cars like sedans plummet to a record low of 19%, a sharp drop from a decade ago when they constituted 47% of the market.

SUVs, on the other hand, are now at a record high, claiming 58% of new vehicle sales. Pat Ryan, CEO of the car-shopping app CoPilot, attributes this surge in popularity to Americans increasingly opting for more space and features, even if it means compromising on mileage and price.

American carmakers have followed suit by tailoring their production lines to this shift in demand. Major manufacturers have ‘virtually abandoned the sedan market,’ CNN reported. Ford, for instance, only makes one traditional car model now – the Mustang. Chevrolet discontinued its mid-size Malibu in November, leaving it without a new sedan offering.

The Covid-19 pandemic saw manufacturers grappling with supply-chain issues. However, they prioritized the production of SUVs and trucks – the moneymaking vehicles. This has resulted in more than six dozen SUV models now available on the market.

Moreover, Ryan attributes much of the SUV boom to ‘crossover’ models. These smaller SUVs are built on a more compact structure, providing more space than a sedan but feeling more car-like than a large SUV built on a truck frame. “Cars have really been replaced by the crossover,” he said.

Interestingly, research suggests that Americans are even buying trucks larger than their needs. Over 60 percent of Ford full-size F-150 pickup truck owners rarely or never use their trucks for towing. Only 28 percent frequently use their vehicles for hauling bulky or heavy items.

Despite the average price tag of a full-size SUV exceeding $70,000, American drivers are willing to make the trade-off for more height, cargo space, and legroom. As Ryan put it, “Americans are bigger people: They like bigger homes and they like bigger cars. It is part of the psychology of our country.”

This shift away from traditional cars to SUVs and trucks points to a significant change in American consumer preferences. The surge in SUV sales indicates that American drivers are prioritizing space, comfort, and additional features over factors such as fuel economy and price. This trend is not just a reflection of changing tastes; it also reveals broader societal trends. As Americans increasingly seek larger homes and prioritize having more space, their vehicle choices mirror this trend.

The rise of ‘crossover’ models further underscores this shift. These vehicles, which offer the space of an SUV but the feel of a car, effectively bridge the gap between traditional sedans and larger vehicles. Their popularity suggests that consumers are looking for a balance between comfort and practicality in their transportation choices.

However, this trend also raises questions about sustainability. With traditional cars often being more fuel-efficient than larger vehicles, the shift towards SUVs could lead to increased fuel consumption. Manufacturers are countering this by investing in hybrid and electric models, but it remains to be seen how quickly these can gain market share.